USDCAD rises as Trump threatens tariffs on Canada and Mexico

The US dollar remains strong, but recent market activity has been limited. Former President Trump announced a 25% tariff on imports from Canada and Mexico, and a 10% tariff on China, impacting the Canadian dollar. Following stronger-than-expected Canadian inflation data, the likelihood of a significant interest rate cut in December has decreased. The market now anticipates an 80% chance of a smaller cut instead. In technical analysis, the USDCAD pair spiked to 1.4177 due to the tariff news, remaining above two-year highs. Support is noted around the 1.41 level, while sellers aim for a drop below 1.3950.